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If you’re a landowner, and you’re thinking about subdividing your land into smaller lots to sell it off for a larger profit, you’re in the right place! Before you make any firm decisions about how to handle the sale of your land, you’ll want to read this article.

We’ll discuss the basics of land subdivision, discuss some of its benefits, and give you some of our top tips for land subdivision – and how to make the most money from your land!





What Is Land Subdivision?

 

Subdivision is the process of dividing a larger piece of land into several parts. Most of the time, it means breaking a large tract of land into a number of smaller building lots. This term can refer to the building of commercial, industrial or residential buildings – but it’s usually used in a residential context.

 

Using a surveying company, you can divide a large swath of land into a number of smaller, easy-to-market parcels. This helps you maximize the value of your real estate, and it has a number of other benefits.

 

The Benefits Of Subdividing Your Land

 

Why bother subdividing your land at all? There are a number of benefits to doing so, rather than just selling it as a single piece of property.

 

  • More lots means more money – By subdividing your land, you can increase its total value. Each individual lot may sell to a developer for more money than it would if you simply sold the entire estate, without any subdivision. This is especially true of residential projects, where the size of each lot is not a major concern.

 

  • Easier to market your land – Few developers have the resources to buy thousands of acres of land wholesale, and build every neighborhood on their own. By breaking up a large piece of real estate into smaller parcels, you can market your land more effectively to developers and individual home builders alike.

 

  • Save some for yourself – If you’re living on a large piece of land, you can liquidate some of your estate without having to sell the entire piece of property. You can stay where you are, and hold onto some of your land for the future – when it may increase in value as the surrounding areas are developed.

 

Our Top Tips For Getting The Most From Subdivision

 

Wondering how you can take advantage of the powerful benefits of subdivision? Here are just a few ideas for land investors!

 

  1. Be on the lookout for houses on large, subdividable lots – If you’re looking to invest in some property, a good place to start is by purchasing a home on a large lot that can be subdivided further – creating additional vacant lots to sell.

    Then, you can either rent, sell, or demolish the home that is now in a smaller lot, and sell the other spaces to home builders and developers.

 

  1. Consider combining land parcel purchases – If you find a lot or a piece of land you want to buy, but you don’t like the way that it is configured, you could consider purchasing adjacent lots as well. After combining these parcels, you can subdivide them, creating new lots that are easier to sell – and potentially allowing you to create more lots.

 

  1. Always list official subdivision approval as a required condition for closing – If you plan on purchasing a piece of property with the intent of subdividing it, make sure that your contract lists subdivision approval by authorities as a condition for closing the sale.

    You want to make sure that you can terminate your purchase agreement if governmental authorities do not approve your subdivision plan, so that you’re not stuck with an unusable or undesirable piece of land.

 

Understand The Power Of Property Subdivision!

 

By subdividing your property, you can extract maximum profits, and make the most of your real estate investments. So think about these benefits, and consider subdividing your estate to maximize its value.